unit 1 business and business environment 1

Phu Nhuan Jewelry Joint Stock Company PNJ is one of the enterprises, brings profits to Vietnam, which is the object of study in this report.. Phu Nhuan Jewelry Joint Stock Company PNJ is

ASSIGNMENT FRONT SHEET 1

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 15/06/2022 Date Received 1st submission

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Error! Bookmark not defined Chapter 4: the relationship between different organizational functions Error! Bookmark not defined Organizational Chart Error! Bookmark not defined Functions of various vital departments in PNJ’s organization chart Error! Bookmark not defined

The main departments of the company Error! Bookmark not defined

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Table of figures

Figure 1: Introducing the company Error! Bookmark not defined Figure 2: information about the company Error! Bookmark not defined Figure 3: Introducing Agribank Error! Bookmark not defined Figure 4: Introducing action on powerty in vietnam Error! Bookmark not defined Figure 5: The chart shows the shareholder structure of vingroup Error! Bookmark not defined Figure 6: Number of PNG'S employees Error! Bookmark not defined Figure 7: PNJ store system in Viet Nam Error! Bookmark not defined Figure 8: Consolidated income statement Error! Bookmark not defined Figure 9: Consolidated balance sheet Error! Bookmark not defined Figure 10: organization Chart Error! Bookmark not defined

Table of Tables

Table 1: Size of company Error! Bookmark not defined

Introduction

In this report, I will study the organization's organization and how it works, and the organization's environment Phu Nhuan Jewelry Joint Stock Company (PNJ) is one of the enterprises, brings profits to Vietnam, which is the object of study in this report This assignment is designed for giving knowledge about various types of organizations, their size and scope of the Company, and functions

Phu Nhuan Jewelry Joint Stock Company (PNJ) is one of the famous enterprises in the jewelry industry in Vietnam In 2004, after more than six years of operation, PNJ was formally equitized and turned from a Communist Party of Vietnam economic company into Phu Nhuan Jewelry Joint Stock Company

CHAPTER 1: The different types and purposes of organizations; public, private and voluntary sectors and legal structure

1 PNJ

Phu Nhuan Jewelry Joint Stock Company (PNJ) is one of the famous enterprises in the jewelry industry in Vietnam In 2004, after more than six years of operation, PNJ was formally equitized and turned from a Communist Party of Vietnam economic company into Phu Nhuan Jewelry Joint Stock Company

❖ Profile

Figure 1: PNJ Profile

2 Type of PNJ company

I Private-owned Enterprise or State-owned Enterprise

❖ a Private-owned Enterprise is a business that is owned and managed by individuals who have freely chosen to pursue a specific business idea They enable people to own ideas, concepts, and assets that work together to generate positive financial results through wealth creation Individuals are empowered and motivated to pursue their self-interest through business ventures, with the incentive

of wealth creation can be amassed through full ownership They are also entirely managed by private individuals, denying governments a say in the Company's decisions and course of action

❖ a State-owned Enterprise (SOE) is a body established by the government through legal means to engage in commercial activities SOEs are essentially created to carry out commercial activities on behalf of the government Besides that, an enterprise is called a state-owned enterprise when owning over 51% of shares of a company The government may take full or partial ownership of a state owned enterprise, usually permitted to participate in specific activities

Figure 2: SOE

Figure 3: The shareholder structure

➢ The pie chart gives information about the shareholders of PNJ In this case, foreign ownership accounts for 49%, and other ownership is 51% It means PNJ, which is a private-owned enterprise because the number of state ownership is 0%

ii Nonprofit and profit organization

According to Heaslip (2021), nonprofit and profit organizations are two entities in opposition to tax effects, governance and function Here are the ins and outs of them

➢ is an organization that works to generate profits for a social cause and benefit the community It is one of the tax-exempt organizations by the IRS The entities must serve the public benefit in some way to become nonprofits Nonprofits do not use their profits for anything other than the organization's advantages—some nonprofit organizations such as schools, hospitals, national charities, foundations, etc

➢ or for-profit organization operates to make money The business exists to bring profits, and the profits are shared for shareholders and investors from the profits Sales and profits are a measure of successful business entities

➢ As mentioned by PNJ (2020), the business results achieved in 2020 as follows:

Table 1: Business result in 2020 (PNJ, 2020)

Based on this table, PNJ enterprise is a profit organization, and profits will be shared for shareholders Especially in 2020, the net revenue of PNJ reaches 17.510.788 million VND, and the cash dividend of PNJ

is 20%

iii Public or unpublicized Company

(or a public-traded company) is one whose shareholders are entitled to a portion of the business's assets and profits Public shareholders, through freely buying and selling shares on the stock exchange or over-the-counter (OTC) markets to become one of the public company owners In addition,

a public company must disclose its financial and business information regularly to the public

is a non-public company with financial and business information It doesn't work on a stock exchange, so people can access, learn about, or buy and sell company shares

Figure 4: PNJ stock chart for the session on 2021 (vietstock.vn)

Phu Nhuan Jewelry Joint Stock Company (PNJ) officially listed 30,000,000 shares and traded in the first session at the Ho Chi Minh City Stock Exchange (HOSE), and the stock code of the Company is PNJ on the morning of March 23 And based on the figure 5, we can assert that Phu Nhuan Jewelry Joint Stock Company is a public-trade company In addition, PNJ shares are held by the public and can be purchased

or sold by investors on the over-the-counter (OTC) market

3 Purpose of PNJ company

the primary purpose of a business is to make a profit So, how is to make profits for investors To respond

to this request, the Company must satisfy customers' needs based on the products and services of the Enterprise It means that Phu Nhuan Jewelry Joint Stock Company must give PNJ's vision, mission, corporate values and objectives, and some specific activities to succeed as the present

i Vision of PNJ

As mentioned by PNJ (2021), with the vision, it wants to become the leading Company in Asia in jewelry manufacturing and retailing beauty products, reaching out to the world With the slogan Belief and style, PNJ has realized it

➢ For example, the PNJ brand is constantly increasing in value and is valued at 93.1 million USD by Forbes Vietnam, up 18% compared to the 2019 evaluation period Therefore, PNJ became the best Enterprise in the jewelry industry in Asia-Pacific in 2020

Figure 5: Fashion by PNJ

iii The corporate value of PNJ

"Integrity Responsibility Quality Innovation Cohesion" (PNJ, 2020) – – – –

Core values of PNJ are always promoted to become strategic "launchpad" turn challenges into opportunities

➢ For example, in 2008 - 20 years of establishment, PNJ announced a new logo change PNJ became one of the 200 largest enterprises in Vietnam as announced by UNDP and was honored to receive the third-class Independence Medal

iv Objectives of PNJ

a) Economic objective

According to PNJ (2020), PNJ sets a net revenue target of more than 21,000 billion VND, up 20% over the same period Thereby, profit and net profit reached more than 4,047 billion VND and nearly 1,230 billion VND, respectively, in 2021

• Sustainable development in revenue and profit

• Maximize the benefits of shareholders and investors

• Improve customers' awareness of the Company's brand and products, not only in the country but also step by step bring the PNJ brand to the world

- Human resource development

b) Social objective

According to PNJ (2020),

Table 2: Social objectives of PNJ

For example, every PNJ employee voluntarily deducts his/her salary every quarter of one day to support PNJ's charity fund to deploy programs on social security, charity activities, or environmental protection every year PNJ has done it for decades

Figure 6: The objectives of PNJ(PNJ.com)

CHAPTER 2: Size and scope of Company

1 Size of PNJ company

According to Brands.vn (2021), size of Company is determined based on 2 criteria: total equity and proportion of employees As follows,

Table 3: Size of company

And here are the tables showing PNJ's equity and PNJ's human resources

Table 4: Equity of PNJ

Table 5: the number of employees of PNJ

Figure 7: PNJ store system in Vietnam

With the characteristics of the jewelry industry to evaluate the size of a business, it should be based on equity, the number of employees, and the storage system of the Enterprise Based on table 3, table 4, table 5, and figure 8, we can be determined the size of the Enterprise Because total equity of PNJ is 5.241.862 million VND and the total number of employees is 6011 people Also, the group has 56 branches and 341 stores in Vietnam; Phu Nhuan Jewelry Joint Stock Company is a large business

Figure 8: PNJ store system in vietnam

3 The size and the scope are compatible with the matter of achieving the objective With 56 brands and 341 stores spread across Vietnam, PNJ has proven its position as a leading company in the jewelry industry in Vietnam It is easy to carry out the mission of reaching out to the region and the world In addition, thanks to abundant capital; young and potential human resources with a vast network of stores throughout Vietnam, PNJ has reached all types of customers and provides customers with diverse and affordable products from silver to high-end such as gold, diamonds, and high-value souvenirs, etc In addition, they are also strong points for PNJ to research and develop products to meet the needs and bring satisfaction to customers Thereby, it is easy to express the mission and corporate values of Enterprise Let's compare PNJ to Doji, which is one of the most competitors of PNJ in Vietnam

Figure 9: Doji's business targets over the years

Figure 10: PNJ's Business target over the years

Based on it, to prove that PNJ has been doing well in objectives Because ROE of PNJ always hit targets higher than Doji between 2016 and 2019 Especially in 2019, while PNJ’s ROE reached roughly 30 %, the ROE of Doji was around 5% With this small comparison, we can see that PNJ is doing very well to achieve sustainable and stable development objectives, constantly reaching out to Asia and the world

Chapter 3: Organizational structure of PNJ

business functions are the processes or operations that ensure an organization's smooth operation These business functions will ensure that your Company runs smoothly and achieves its goals Each department will be made up of professionals specializing in specific areas, such as data analytics or digital advertising Here’re the organizational structure

❖ Functional structure is one of the most common organizational structures Under this structure, the organization groups employees according to a specialized or similar set of roles or tasks While functional structures work effectively in stable contexts where company strategies are less prone to change or dynamism, the bureaucracy in organizations makes it difficult for them to adjust rapidly to market developments

❖ A divisional organizational structure allows a big commercial corporation to divide substantial portions

of its operations into semi-autonomous entities A divisional organizational structure comprises numerous parallel teams focused on the same product or service line

❖ A matrix organizational structure is used to distribute resources and workers across multiple operations in most businesses A matrix organizational structure is a type of workplace structure in which employees report to two or more managers rather than one manager who oversees all aspects

of a project

❖ Project-based organizations (PBOs) are different organizations that create temporary systems to carry out their work Businesses that require and anticipate rapid innovation are more likely to be and better suited to project-based organizations Many industries, including entertainment, construction, and aerospace, divide their work into projects Departments are formed in a functional structure to organize work based on specialties such as marketing and finance However, in a project-based

organization, most business functions are classified into projects

1 Organization chart of PNJ

Figure 11: Organization chart (PNJ.com)

Based on the figure 12, we can be determined the function of PNJ, which is called the functional structure chart Because of the joint management of senior officials, activities are grouped by a common purpose, process, and specialization Moreover, the individuals who take on the roles in the departments all have the following qualifications in that field such as marketing division, strategic division, human resources division, etc

2 Functions of various vital departments in PNJ’s organization chart

i General Meeting of Shareholder

the General Meeting of Shareholders is the Company's highest decision-making body, comprised of all shareholders with voting rights The General Meeting of Shareholders meets once a year, within four months of the fiscal year's end The Annual General Meeting of Shareholders debates and votes on the following topics: the Company's annual business plan, annual financial statements, and reports, etc

ii Board of Directors

The Board of Directors is the Company's management body, on behalf of the Company to make decisions

to exercise the rights and obligations of the Company These rights and duties are not under the authority

of the General Meeting of Shareholders This agency has the right and responsibility to make crucial decisions of enterprises such as strategic decisions, medium-term development plans and annual business plans of the Company, appointment, dismissal, dismissal, sign a contract or terminate the agreement with the Director or General Director, etc

iii General Director

General Director (CEO) is a senior executive, usually the chief executive The General Director is subject to the supervision of the Board of Directors and is responsible to the Board of Directors for the implementation of the assigned rights and duties General Director is the person who manages and supervises all business activities, people as well as cooperative activities of the Enterprise